While most defined contribution plan sponsors work with an adviser or consultant and are satisfied with the services they provide, some are nevertheless looking to switch, according to Fidelity Investment's 14th annual plan sponsor attitudes study released Aug. 28.
The study found that 94% of plan sponsors use an adviser, with 76% reporting that they are extremely satisfied with the adviser they chose.
Still, more than 1 in 5, or 22%, are actively looking to replace their adviser. Plan sponsors cited the need for an adviser with more extensive services as the top reason for the change, followed by the need for an adviser who is more effective in dealing with servicing issues. More than 1 in 3 (34%) said they are looking for an adviser who offered better employee communication and education.
The study found that plan sponsors look to their advisers primarily for employee education and plan improvement, with employers valuing participant outcomes (44%) over any other service offered by their plan advisers. Employers also rely on their advisers for plan and administrative support (43%) and objectivity when making plan choices (41%).
"While we see the relationships between plan sponsors and plan advisors evolving, employee communication and education remains at the forefront, with sponsors looking to advisors to offer a more holistic experience," said Elizabeth Pathe, Fidelity's senior vice president and head of defined contribution investment only sales, in a news release.
The study is based on an online survey of 1,351 plan sponsors with at least 25 participants and $3 million in plan assets in March.
